Kintsu has launched its liquid staking protocol on the Monad mainnet, introducing a community-driven model that aims to balance decentralisation, liquidity and yield more effectively in proof-of-stake networks. The protocol uses a performance-based validator marketplace and a single governance token that helps coordinate decision-making while rewarding network participants.
A New Approach to Traditional Staking Limitations
Staking is central to the functioning of proof-of-stake chains, yet it often restricts participation. Many networks set high minimum token requirements for validators, which prevents smaller users from joining. Staked tokens also remain locked, limiting liquidity and creating an opportunity cost for users who might otherwise deploy capital across the wider ecosystem.
Liquid staking emerged to solve this challenge. By issuing liquid staking tokens (LSTs) that mirror the value of staked assets, users can maintain access to liquidity while still earning staking rewards. These LSTs circulate across decentralised finance applications for lending, trading and derivatives. Early liquid staking designs, however, often relied on validator sets selected by project teams, which created centralisation risks and reduced the neutrality of the system.
Restoring Decentralisation in Liquid Staking
Kintsu introduces a model centred on community governance rather than fixed validator lists. Delegation is determined through onchain voting, which continuously rebalances stake toward high-performing validators. Under this structure, operators must earn delegation by demonstrating reliability and performance. This introduces a market-driven mechanism that makes staking yield more transparent and participation more inclusive.
The core asset of the system is sMON, Kintsu’s liquid staking token for Monad. sMON represents staked MON that remains usable throughout the DeFi ecosystem, enabling capital to circulate while validators continue to secure the network. This approach links liquidity and network security without compromising decentralisation.
Kintsu also gives validators flexibility in handling MEV. Rather than enforcing a single MEV solution, the protocol allows operators to choose their preferred infrastructure. Their MEV performance then becomes part of their overall yield profile, supporting competition and preventing technical lock-in.
Supported by Funding and Audits Ahead of Mainnet Launch
Kintsu’s mainnet launch follows a four million dollar seed round completed last year. The round included Castle Island Ventures, F Prime, Brevan Howard Digital, Spartan, Animoca and CMT Digital. The protocol has completed multiple audits and now introduces its non-custodial staking system to the Monad network as the chain begins to expand its ecosystem.
Alongside the launch, Kintsu introduced a Points Program designed to reward early supporters. Participants who help drive sMON adoption accumulate points that will influence future distribution of Kintsu’s governance token.
Roadmap for Governance and DeFi Expansion
In the coming months, Kintsu will prioritise activating full governance and expanding sMON integrations across Monad’s emerging DeFi environment. Partnerships and cross-protocol collaborations are expected to form a core part of this phase. The protocol’s governance token KSU will play an important role as it develops its validator marketplace and coordination system.
Kintsu’s long-term vision positions staking as an active, participatory layer rather than a locked commitment. The project aims to combine yield generation, liquidity and decentralised security in a unified model powered by open governance and market-based validator performance.
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